Higher operating costs and lower-than-anticipated yield led to Jet Airways posting a net consolidated loss of Rs 348 crore for the first quarter ended June against a Rs 35-crore profit in the year-ago period.
The loss is higher than Street estimates of a loss of Rs 200-250 crore. The airline said a significant depreciation of the rupee, which crossed the psychologically important 60-mark against the dollar during the quarter, along with steep increases in airport charges at key metros, high fuel prices and a slowing economy that prevented it from raising fares led to higher-than-expected losses. The overall impact of these factors was $56.5 million (Rs 339 crore).
JetKonnect (JetLite), which had lower operating expenses than Jet Airways, posted a profit of Rs 6.9 crore against Rs 11 crore in the year-ago period, while Jet Airways made a standalone loss of Rs 355 crore. Jet Airways’ standalone revenue fell 12 per cent to Rs 4,064 crore as the airline carried fewer passengers and withdrew from international routes. Yield grew only 4.7 per cent despite April-June being a good season for leisure travel.
Full report here Business Standard